Posted by OilVoice Press - OilVoice
• Acquiring oil and gas assets producing 450 boe/d in its existing area of focus in Central Alberta for the gross amount of CAN$1.9m (30% working interest for the Company).
• Acquisition is subject to Court Approval as the assets form part of a Court Appointed Receivership sale process.
• Adds 1 35 boe/d net to Whitebark, 3 5 % oil and NGL's and 65% natural gas.
• 2017 Gross Net Operating Income of circa CAN $1.3 million.
• Effective Date of 1st November 2017.
• Circa 30,000 gross acres of land.
• Identified undeveloped locations, including PUDs, with multizone opportunities for future exploitation and development.
Whitebark Energy Ltd (ASX: WBE) (“Whitebark” or “the Company”) is pleased to announce that it, along with its Canadian Joint Venture partner, Point Loma, is acquiring oil and gas assets that will increase the PLJV's current daily production by over 30% (Point Loma 70% working interest and Whitebark 30% working interest).
“This acquisition will take Whitebark 's existing net production to approximately 4 0 0 boe/d and represents the fourth transaction since Whitebark ent ered into the PLJV in May 2017,” said Whitebark Managing Director David Messina. “We remain focused on growing our Canadian oil and gas business through a combination of acquisitions and an active work program.”
WBE and Point Loma ha ve entered into a defi nitive agreement , subject to Court approval, to acquire oil and gas assets comprising circa 30 ,000 gross acres of land and associated facilities. It is adjacent to the PLJV's existing landholdings and has current production of approximately 450 boe/d compris ing 3 5 % oil and NGLs.
The assets include significant upside potential with booked Proved Undeveloped reserves as well as numerous exploration locations with multi-zone potential across the Mannville, Cardium and Duvernay zones .
The a cquisition is anticipated to close in March 2018 and is subject to Alberta Court Approval, customary closing conditions and regulatory approvals, including the appro val of the TSX Venture Exchange . A deposit of CAN$190,000 is payable by the Company which i s refundable unless completion of the transaction does not occur due to the default of the buyer. The Company is funding the deposit from its existing cash reserves and it will be credited against its proportion of the acquisition payment.
The properties include areas with proved undeveloped locations booked in addition to the base production. It is the intention of the Company and its joint venture partner to update the reserves of the project to 31 December 2017 post - closing, it being noted that the Company has not yet undertaken the necessary work to complete a reserve estimate by an independent third party.
This work is expected to be completed shortly and the Company will provide an appropriate up date to the market at that time.
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